Int. J. Management and Decision Making, Vol. 17, No. 2, 2018 171
Copyright © 2018 Inderscience Enterprises Ltd.
A fuzzy EOQ model for deteriorating items with
imperfect quality using proportionate discount under
learning effects
Rojalin Patro, Milu Acharya and
Mitali Madhusmita Nayak
Department of Mathematics,
Institute of Technical Education and Research,
Siksha ‘O’ Anusandhan University,
Bhubaneswar, Odisha, India
Email: patro.rojalin@gmail.com
Email: miluacharya@soauniversity.ac.in
Email: mitalinayak@soauniversity.ac.in
Srikanta Patnaik*
Department of Computer Science,
Institute of Technical Education and Research,
Siksha ‘O’ Anusandhan University,
Bhubaneswar, Odisha, India
Email: patnaik_srikanta@yahoo.co.in
*Corresponding author
Abstract: The present paper analyses the impact of learning on optimal
solution of inventory problems. The aim of the paper is to develop both crisp
and fuzzy EOQ models for imperfect quality items under deterioration and
analyse the effect of learning on holding cost, ordering cost and the number of
defective items present in each lot and deal the fuzziness aspect of demand for
the fuzzy model. In this paper, it is assumed that all received items are not of
perfect type and after100% screening, imperfect items are dropped from the
inventory and sold at an allowable proportionate discount. Due to the repetition
of handling the system holding cost and ordering cost gradually decrease from
one shipment to another. The optimal lot sizes of both crisp and fuzzy models
are obtained by calculus method and the total profit functions for each model
are also derived. The total profit function of the fuzzy model is defuzzified by
using signed distance method. Numerical examples are provided to illustrate
the developed models and sensitivity analysis is conducted to show the effect of
number of shipments on the order quantity and the total profits of the models.
Keywords: inventory; economic order quantity; EOQ; imperfect quality;
deteriorating items; proportionate discount; triangular fuzzy number; signed
distance; learning effects; defuzzification.
Reference to this paper should be made as follows: Patro, R., Acharya, M.,
Nayak, M.M. and Patnaik, S. (2018) ‘A fuzzy EOQ model for deteriorating
items with imperfect quality using proportionate discount under learning
effects’, Int. J. Management and Decision Making, Vol. 17, No. 2, pp.171–198.